Major Ford and GM factories suspend operations


A shortage of natural gas caused by a severe winter storm forced Ford (NYSE: F) to shut down its Kansas City, Missouri, plant where the F-150 pickup and Transit van are produced, the company said Monday. At a time, General Motors (NYSE: GM) said four of its factories – in Texas, Kentucky, Tennessee and Missouri – would suspend operations due to disruption caused by the storm, Detroit News reports.

Production disruptions come at a time of high demand and on the heels of other failures caused by a global shortage of semiconductor chips. Parts of the same Ford Kansas City plant have been affected by the chip supply issue, but now the entire plant is expected to be closed until next Monday. The plant produces the highly profitable F-150 pickup as well as the popular Transit commercial van.

Ford F-150 Raptor pickup truck. Shortages of natural gas caused by winter conditions have resulted in the closure of a plant where the pickup is being built. Image source: Ford.

“Due to unusually cold temperatures in the central United States, Ford has been warned that the availability of natural gas may be limited in the Kansas City area in the coming days,” said Kelli Felker, global manufacturing manager. and work communication at Ford. A declaration. She added that the decision to suspend operations was taken “to ensure that we minimize our use of natural gas which is essential for heating people’s homes.”

GM models affected by its plant closures include the Corvette, GMC Yukon, Chevrolet Suburban and Tahoe, and Cadillac Escalade. Investors should expect to hear more details about these disruptions, as they come at a time of high demand as companies strive to replenish stocks after the pandemic suspensions in early 2020.

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